Rupee strengthens against US dollar on Tuesday
The Indian rupee strengthened against the US dollar on Tuesday, tracking firm domestic equities and subdued crude oil prices. Rupee improved further by weakness in the US dollar index as US President Donald Trump’s growing influence on Federal Reserve policy including plans to replace Fed Chair Powell has unnerved investors and revived fears over the central bank's independence. Rupee also supported by the CGA data showed the central government's fiscal deficit fell sharply to 0.8% of the full-year target at the end of May, mainly due to a whopping Rs 2.69 lakh crore dividend received from the Reserve Bank of India. However, some gains were limited by foreign fund outflows from capital markets. Foreign institutional investors offloaded equities worth Rs 831.50 crore on a net basis on Monday, exchange data showed.
The partially convertible currency is currently trading at 85.60, stronger by 16 paise from its previous close of 85.76 on Monday. The currency touched a high and low of 85.66 and 85.3450 respectively.
